What is your view on the forthcoming bond issue of IIFL Home Finance?

Here are some of the key highlights of the IIFL Home Finance bond issue. IIFL Home Finance is a subsidiary of IIFL Finance, which is the fund based driver of the IIFL group.

· The Rs.1,000 crore bond issue will consist of Rs.100 crore base issue and Rs.900 crore offer for sale. The coupon rate will be in the range of 8.25% to 8.75%.

· The bond issue will open for subscription on 08-December and will close for subscription on 28-December, both days inclusive.

· The bonds (non-convertible debentures) will come in 3 maturities of 36 months, 60 months and 84 months. Obviously, rates will be higher for distant maturities.

· CRISIL, India’s leading rating agency, has assigned a "AA/Stable” rating for the bond issue while Brickwork Ratings has given “AA+/ Negative” rating. These indicate high safety.

· IIFL Home Finance will look to expand its reach to smaller towns and cities and also expand its AUM from the current Rs.21,474 crore to Rs.25,000 crore by March 2022.

· is looking to expand in smaller towns with an aim to cross the Rs 25,000-crore mark in terms of assets under management (AUM) by March 2022.

The yields are attractive and offer a good choice for conservative investors who want to lock in investments at higher yields.